Synopsis: ED busts ₹2,300 crore crypto Ponzi scheme across Himachal Pradesh and Punjab, freezing ₹1.2 crore in assets while mastermind Subhash Sharma remains abroad. Let’s look into How fake crypto platforms and lavish seminars trapped lakhs of investors including police and government officials in North India’s biggest digital asset fraud.
The Enforcement Directorate has uncovered a massive cryptocurrency fraud that siphoned ₹2,300 crore from unsuspecting investors. On December 13, 2025, ED officials raided eight locations across Himachal Pradesh and Punjab. The operation exposed a sophisticated multi-level marketing scheme that operated through fake crypto platforms.
Lakhs of investors lost their hard-earned money to this elaborate scam. The mastermind, Subhash Sharma, fled India in 2023 before authorities could apprehend him. However, investigators continued their probe under the Prevention of Money Laundering Act, 2002. The searches resulted in freezing bank balances and fixed deposits worth ₹1.2 crore.
This case represents one of India’s largest cryptocurrency frauds in recent years. Moreover, it highlights the growing threat of unregulated digital asset schemes targeting vulnerable communities.
The Fraudulent Network and Its Operations
The accused created multiple fraudulent platforms including Korvio, Voscrow, DGT, Hypenext, and A-Global. These platforms promised extraordinary returns to lure innocent investors into the trap. In reality, they operated as classic Ponzi schemes without any legitimate cryptocurrency backing.
ED investigations revealed that the scammers used new investor funds to pay earlier participants. The accused manipulated fake token prices on their self-created platforms to show artificial growth. Periodically, they would shut down existing platforms and rebrand them to avoid detection.
The network relied heavily on commission agents who earned crores by recruiting new victims. Furthermore, these agents specifically targeted police personnel and government officials in Himachal Pradesh. The masterminds organized lavish seminars at high-end hotels to build credibility among potential investors.
Foreign travel incentives and promotional events served as additional bait for expanding the scheme. The accused used these tactics to create an illusion of legitimacy and success.
Money Laundering and Asset Concealment
The criminals employed sophisticated methods to launder their illegal proceeds. Cash collections flowed through well-known builders who participated in the money laundering network. Shell entities and personal bank accounts of the accused and their relatives helped conceal the fraud.
ED officials discovered that Vijay Juneja, one of the arrested accused, violated existing freezing orders. Despite a freeze order issued on November 4, 2023, he illegally sold 15 plots in Zirakpur, Punjab. The order had been communicated to the Finance Secretary, the High Court, and Punjab revenue authorities.
During the search operations, authorities seized incriminating documents related to numerous property investments. Additionally, investigators found evidence of benami properties purchased using proceeds from the scam. The seized materials included detailed investor databases and commission structure documents.
Digital devices recovered during raids contained crucial evidence of the large-scale money laundering operation. These findings will help authorities track the complete flow of illicit funds through various channels.
Legal Actions and Investigation Status
The ED launched its investigation based on multiple FIRs registered by police stations across both states. Local authorities had filed cases against Subhash Sharma and his associates under various legal provisions. These included sections of the Indian Penal Code, Chit Funds Act, and Banning of Unregulated Deposit Schemes Act.
The investigation continues as authorities work to identify all perpetrators and recover stolen assets. ED officials are tracing unnamed properties acquired through the proceeds of crime. Three bank lockers have been frozen as part of the ongoing asset recovery process.
The scale of this fraud demonstrates the urgent need for stronger cryptocurrency regulations in India. Consequently, investors must exercise extreme caution when approached with promises of unrealistic returns. This case serves as a stark reminder about the dangers lurking in unregulated financial schemes.
Authorities are now focusing on tracking down Subhash Sharma, who remains at large in a foreign country. The investigation aims to bring all accused individuals to justice and recover maximum assets for defrauded investors.
Written By Fazal Ul Vahab C H
